Followers | 680 |
Posts | 141257 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, June 07, 2022 11:18:49 AM
By: TheStreet | June 7, 2022
• Target stock came into Tuesday under pressure after a bearish update.
Target (TGT) stock opened more than 7% lower on June 7 after the retail giant warned about its profitability.
Just a few weeks ago, Target stunned Wall Street with its quarterly update as inflation and inventory issues cut into its guidance.
Walmart (WMT) spoke in a similar tone the day before.
In the latest update, Target said its second-quarter operating margin would likely come in closer to 2% rather than the 5.3% it guided to last month. Further, the retailer is offering deeper discounts on some of its products to reduce inventory.
Interestingly, Costco Wholesale (COST) is raising prices while Target is now cutting them.
Another interesting note? Investors are buying the dip. A few weeks ago, Target and Walmart’s update sent a one-two punch rippling through the market.
Now, though, we’re seeing the opposite effect. Target stock is down just 1% on the day, while the S&P 500 and Nasdaq — which were down 1% and 1.4% in early trading, respectively — are now both in positive territory.
Are investors changing their tune?
Trading Target Stock
Daily chart of Target stock.
Chart courtesy of TrendSpider.com
A glance at Target’s stock reveals one very key area: $145 to $150. The importance is a culmination of several observations.
First, the stock hammered out its initial post-earnings low in this zone. It’s now retesting this area today, but we’re getting a robust buy-the-dip reaction from the bulls.
Second, we have the 200-week moving average in this zone. It adds to the significance and legitimacy of this area. Lastly, there’s bullish divergence on the RSI reading (as noted at the bottom of the chart).
Put it all together and Target stock has a pretty impressive support zone.
But -- that does not mean the stock is out of the woods.
We’ve almost completely filled today’s gap, but other hurdles exist. For starters, Target stock has not reclaimed the declining 10-day moving average. For now, that’s likely to be active resistance.
Additionally, the stock has put in a higher low and lower high. This wedge pattern is a consolidation phase and we still face the risk that it consolidates and breaks lower.
That changes if Target stock can break out over wedge resistance (blue line) and clear the post-earnings high at $168. Above $168 and the stock can begin filling this giant gap, which goes all the way up to $209.
Of course, to completely fill the gap it will have to push through the declining 21-day and 50-day moving averages as well.
Obviously the bulls do not have an easy ride from here.
It’s immensely positive, however, to see a bullish reaction to a bearish news item. The stock still faces headwinds, but if it can clear them, it could set up Target stock for an extended rally.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent TGT News
- Novavax Surges 57% Post $1.4 Billion Sanofi Deal; Apple Boosts Data Centers with AI and Internal Chips, and More News • IH Market News • 05/10/2024 12:02:56 PM
- Tesla’s April Sales Down 18% in China, Amazon’s Multi-Billion Dollar Cloud Expansion in Singapore, and More News • IH Market News • 05/07/2024 11:44:00 AM
- Target Serves Up Exclusive Pickleball Collection with Popular Tennis Brand Prince • PR Newswire (US) • 04/16/2024 10:01:00 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Target Taps Kristen Wiig as 'Target Lady' to Bring the Excitement for Big Spring Savings at Target Circle Kick-Off and Target Circle Week Event • PR Newswire (US) • 04/02/2024 01:00:00 PM
- Sportsman’s Warehouse Announces New Executive Leadership • GlobeNewswire Inc. • 03/19/2024 08:05:00 PM
- Target Corporation Declares Regular Quarterly Dividend • PR Newswire (US) • 03/13/2024 10:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 08:42:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 08:39:37 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/11/2024 06:57:02 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/08/2024 03:49:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 09:46:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 09:46:08 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/07/2024 03:17:33 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 08:14:42 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 07:44:44 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 06:12:10 PM
- Airship AI skyrockets with DOJ contract; Carrier Global sells Fire Industrial division for $1.43 billion, and Latest News • IH Market News • 03/06/2024 11:01:03 AM
- Target Announces Plans to Deliver Enhanced Shopping Experience in 2024 and Beyond • PR Newswire (US) • 03/05/2024 06:00:00 PM
- Futures Pointing To Continued Weakness On Wall Street • IH Market News • 03/05/2024 02:03:27 PM
- Target Surpasses Expectations with a Robust 58% Increase in Q4 Profits • IH Market News • 03/05/2024 01:36:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/05/2024 12:48:41 PM
- Target Corporation Reports Fourth Quarter and Full-Year 2023 Earnings • PR Newswire (US) • 03/05/2024 11:30:00 AM
- U.S. Futures Dip, Crude Oil Fluctuates • IH Market News • 03/05/2024 11:05:54 AM
- AMD Hits Regulatory Roadblock, GitLab’s Stock Tumbles on Disappointing Earnings, and Latest News • IH Market News • 03/05/2024 11:05:08 AM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM